Financing in 95624>Question Details

hez10, Home Owner in Sacramento, CA

Where can I get a equity loan or line on my rental property that I do not owe?

Asked by hez10, Sacramento, CA Fri Sep 20, 2013

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GSE guidelines for cash out refi limit your cash out to 70% on duplex property or up to 75% on a single family house. I expect the HELOC guidelines for most lenders to conform to that LTV maximum limit.
You indicated that it is now free and clear.
So if your property value is $200,000 the most you can pull out is $150,000 (less any lien that has to be paid off) if it is a house, or $140,000 if it is 2 to 4 units.
If it is 5 or more units. It is a whole nother ballgame.

You can get 90% to 100% of the value out if you sell it. First, get a estimate of value and marketing plan from one of the Realtors that responded to your post. Your best prospect to buy it if it is a single family house is the tenant that is living there now.

Because you own it free and clear, you could sell it with owner financing, take a large down payment for the cash you need, then take payments that are the same size as the monthly rent you are currently earning, without having to shoulder the insurance, maintenance, property tax, and utility bill that you currently carry.

These are just random ideas, may not fit your personal situation. But it is okay to consider alternatives before you commit to the equity loan.
1 vote Thank Flag Link Fri Sep 20, 2013
Jim Walker, Real Estate Pro in Carmichael, CA

There are a few lenders that provide HELOCs for rental properties.
It is going to be full doc though, so income verification, 1040s etc. are required.

Let me know if you need the details.


James Tan
916 230 5250
1 vote Thank Flag Link Fri Sep 20, 2013
I suggest you head into your bank. If you dont have a regular bank I would suggest Wells Fargo. They process HELOCs quickly, they are inexpensive, and their rates are good. Call Ben Ludinton at 9163652209 and he will set you up with a banker who can handle it for you. Do not see a mortgage broker for a HELOC, many of them dont do HELOCs so they will may encourage you to do a first mortgage which is far more expensive...
1 vote Thank Flag Link Fri Sep 20, 2013
Flag Fri Sep 20, 2013
Contact a couple banks or lenders and ask if they do home equity loans. Sometimes you find lenders that will do it for free or really cheap. Make some calls.
1 vote Thank Flag Link Fri Sep 20, 2013
If you like it can help provide you the information of loan team that I work with, just send me an email. They can provide a good reasonable rate.
Jain Rishab
RE/MAX Active Realty.
Short Sale And Foreclosure Resource
Phone: (510) 676-4770
1 vote Thank Flag Link Fri Sep 20, 2013
Good morning, If you are needing an equity line it really depends on how much equity is in the rental property, being that the market has went up you should have some equity. I do have a lender that specializes in HELOC's for rental properties. Please send me an email and I will send your contact info to Ryan Martin here in me at
0 votes Thank Flag Link Fri Sep 20, 2013
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